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  #1  
Old
Web Hosting Master
 
Join Date: Jul 2003
Posts: 602

Break Even


How long did it take you to break even?

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  #2  
Old
Junior Guru Wannabe
 
Join Date: Jul 2003
Location: Philippines
Posts: 72
10 weeks.

  #3  
Old
Web Hosting Master
 
Join Date: Jul 2003
Location: Waterloo, Ontario
Posts: 1,065
Depends what business you're in. If you're in gamehosting it can take a long time because you're always buying new dedicated servers and paying more setup fees. If you're a webhost then it shouldn't take you long to break even, maybe about 2 months or so.

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  #4  
Old
Aspiring Evangelist
 
Join Date: Sep 2002
Posts: 387
6 weeks to profitibility before taxes.

It will really depend what your market niche is though. If you are looking for super cheap customers or quality driven business clients you will have different break even time. Also it really depends on what your costs are and what advertising (if any) you are doing.

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  #5  
Old
The SpamAssassin
 
Join Date: Oct 2002
Location: New York
Posts: 1,063
Depends if you colocate, rent a dedicated server, or have a inhouse connection, also.

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  #6  
Old
Junior Guru
 
Join Date: May 2002
Location: MN
Posts: 223
The break even point isnt no fun..

how long until you where making enough to pay not only your hosting bills but your bills at home also

( Children living in there parents basement using DSL need not respond )

  #7  
Old
Web Hosting Master
 
Join Date: Feb 2003
Location: Lake Arrowhead, CA
Posts: 933
Wow , I must be doing something wrong. I just hope to break even this year. Even my business plan doesn't show a profit this year. Of course I understand tax breaks and write offs so I have planned for this.

I have made major investments in office furniture, supplies, employees, offices, ect. But according to my accountant I'm doing just fine. It's all part of owning a business.

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Dale Poncy
Retired from Zana Web Hosting

  #8  
Old
Web Hosting Master
 
Join Date: Apr 2001
Location: Montana USA
Posts: 673
Break-even is elusive. Sure we recouped our colo costs years ago, so that was 'breakeven'. Oh, we need more servers. Oh, we need more bandwidth. Oh, salaries... and additional employees. More furniture and PCs. Office renovation/remodel. Headhunter fees. Increased marketing budget. And so on.

Expect your expenses to rise by a zillion percent, and hope your revenues follow.

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  #9  
Old
Aspiring Evangelist
 
Join Date: Sep 2002
Posts: 387
Well, take my statement with a grain of salt--the infrastructure was already in place --office, etc.

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  #10  
Old
Web Hosting Master
 
Join Date: Jan 2003
Location: Lake Arrowhead, CA
Posts: 789
Quote:
Originally posted by dapon
Wow , I must be doing something wrong.
I doubt it.

I know that was tounge in cheek, but I think it's important to highlight the difference between the typical new host leasing a single server or reselling, and others (like you) who started with long term business plans from the beginning.

Sure, you can start with very little investment and still be sucessful, but (IMO) that tends to put way too much of your early success into "fate". Without things like backup hardware and contracts with alternate bandwidth providers, you're more likely to go under the first time you or your DC is hacked as to ever break even.

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  #11  
Old
Disabled
 
Join Date: Dec 2002
Location: Miami, FL
Posts: 1,487
We broke even 2 months after we started. But we didn't start off with 10 servers, 5 employees, a $20,000 dollar design, etc etc.

As already mentioned, it depends on how much you invest as your startup cost and what you purchase and so on.

  #12  
Old
WHT Addict
 
Join Date: Feb 2002
Location: uk
Posts: 111
5 weeks.

  #13  
Old
Premium Member
 
Join Date: Mar 2003
Location: Saint Paul, MN
Posts: 826
Two weeks... but that was as a low-end reseller, almost a year ago. It's grown steadily since then, to the point that I was just able to purchase what will be my first colocated hosting machine. Awww, isn't that special.

We're following our business plan, but not quite achieving expected growth - the two are very different.

  #14  
Old
Web Hosting Master
 
Join Date: Jul 2002
Posts: 2,240
6 months. Of course it would have only been 2 months if HostCharge wouldn't have screwed me over.

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  #15  
Old
Web Hosting Master
 
Join Date: Sep 2001
Posts: 1,310
I've been at it for over two years now but break-even is not in sight. I'm guessing at least another year and a half

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